At least the momentous growth of India’s gaming sector is being challenged in its infancy. As the countdown from the Union Cabinet approving the Online Gaming Bill hits zero, the industry finds itself at a crossroad.
While esports lobbies see some hope for legitimacy and growth, platforms engaged in real-money gaming, such as Dream11, Winzo, Games24x7, among others, face an existential threat.
#MonsoonSession2025 | I&B Minister @AshwiniVaishnaw introduces The Promotion and Regulation of Online Gaming Bill, 2025 in Lok Sabha.@MIB_India @sansad_tv #monsoonsession #OnlineGamingBill2025 pic.twitter.com/0rDXelIgnU
— DD India (@DDIndialive) August 20, 2025
In addition, Union IT Minister Ashwini Vaishnaw will table the Promotion and Regulation of Online Gaming Bill, 2025.
Understanding the Online Gaming Bill
The mainstay of the act is to tax the vast online gaming-enhanced ecosystem, particularly to address illegal betting and the associated malaise. It arose in matters of controversy, including celebrity-endorsed bets and scam reports, calling for a major overhaul.
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On approval, the Act would penalize all money-based gaming, limit promo and block banking channels from settling payments relating to such games. Offenders may be punished with a sentence plunging up to three years and steep fines.
Consequences for Real Money Gaming
Real money gaming is the very lifeline that supports the entire growth. RMG now comprises $3.7 billion, and with a projection of $9.1 billion by 2029, it comes close to 86% of the total revenues.
The bill, when executed in its present form, is most likely to rip apart that very foundation on which stand enterprise valuations of over Rs. 2 lakh crore, annual revenues of Rs. 31,000 crores and Rs. 20,000 crores in taxes. Once a sweetheart with a 20% CAGR, now the whole growth path of the sector looks cloudy.
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Supporters Hail the Bill for Esports
Esports stakeholders see potential in this legislation. Animesh Thug Agarwal, co-founder of S8UL, declared that “the bill is a historic turning point,” adding that separating skill-based esports from betting ensures integrity and, at the same time, opens the path to structured growth. Similarly, Akshat Rathee of NODWIN Gaming asserted that the presence of clear definitions separating esports from online gaming and money-earning platforms is highly critical for regulatory clarity on a global competitive stage.
Albeit AIGF, an apex body for gaming in India, has been warning that a blanket ban on RMGs will annihilate the sector. They have stated that a halt instead of regulating will impair jobs, cripple entrepreneurship pays taxes and undermine India’s gaming potential.
Future of Digital Gaming in India
The Online Gaming Bill has the power to alter the landscape of digital entertainment in India. Recognition and legitimacy could come to esports, while the real-money gaming sector-the very lifeline of the industry-is about to undergo serious disarray. With billions in market capital and people at stake, the following weeks will determine whether regulation would become a driver of innovation or if prohibition would entail a collapse.
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